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Wells Fargo Close to $1 Billion Settlement on Risk Management

Settlement could include increased regulatory scrutiny of compensation to employees responsible for sales practices

The retail banking industry is undergoing another major shift, and the future looks high-tech, sophisticated, and, for big banks, very urban. So what has changed? Photo: Shaumbé Wright/The Wall Street Journal

Wells Fargo & Co. is close to settling claims by federal regulators related to its risk management, involving a fine of as much as $1 billion, people familiar with the matter said.

The settlement with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency is expected to be announced as soon as Friday. It will detail the bank’s failures to catch and prevent problems, including improper charges to consumers in its mortgage and auto-lending businesses, the people said.